One explanation is that, as bank loans begin to trade in the secondary markets like ordinary bonds, the banks themselves are less interested in preventing borrowers from imploding than when they kept the debt on their books.
Most will be ordinary bank bonds that can be converted by the regulator.
Moreover, if the money comes from the European Stability Mechanism, the EU's permanent rescue fund, it will be senior to ordinary government bonds.
The ones that do pay interest resemble ordinary fixed-rate bonds.
The Cleveland Fed inflation estimates, based on financial market data including the interest rate spread between ordinary and inflation-protected Treasury bonds, show expected inflation of 1.4 percent per year over the next ten years.
Lawmakers told the mission that Congress would reject any economic salvage plan that hinges upon freezing the savings of ordinary Argentines and turning them into bonds - paper pledges to pay the depositors in future - according to Jorge Capitanich of the ruling Peronist party.
So if trust income is a mixture of dividend, capital gain and tax-free income (from muni bonds or principal), the ordinary income must be used up before the payout can be taxed as gain, and gain must be used before the payout can be tax-free.
Another point: Since 2003, dividends have generally been taxed at just 15%, much lower than most bonds, whose interest payments are taxed at ordinary-income rates.
For most families, that means corporate or U.S. government bonds, whose interest payments are taxed at higher ordinary-income rates.
In the experiment capital gains and dividends are taxed as ordinary income and there is no exclusion for state and local bonds issued after December 31, 2012.
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The annual income from the bonds, if held, will be taxed higher as ordinary income.
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Unlike ordinary mortals, he can move in and out of stocks and bonds without an annual tax bill cutting his returns.
Ordinary Italians are being urged to do their patriotic duty and to buy government bonds.
Even if we hike dividend tax rates to ordinary income rates, some high dividend stocks will still be attractive compared to their bonds.
Specifically, an Obama victory will stoke fear of higher taxes on dividends and ordinary income, and drive a rotation out of investment grade and high-yield corporate bonds and into municipal bonds.
And second, because of the principal guarantee, the Internal Revenue Service treats these like zero-coupon bonds, meaning you pay taxes on imputed interest of around 5% each year, at ordinary-income rates as high as 35%.
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